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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Committees

Under the Companies Act, 2013, which statement is correct about the attendance of committee chairpersons at general meetings of a company that has constituted the NRC and the Stakeholders Relationship Committee?

The chairperson of each committee constituted under section 178, or in his absence another member authorised by him, shall attend the general meetings of the company. Section 178(7) makes this mandatory, not optional, and it is not limited to particular types of meeting.

  1. AOnly the chairperson of the Audit Committee must attend
  2. BThe chairperson of each committee under section 178, or a member authorised by him if he is absent, shall attend general meetingsCorrect
  3. CCommittee chairpersons attend only extraordinary general meetings
  4. DAttendance is optional and left to the Board

Explanation

Section 178(7) requires the chairperson of each committee constituted under that section, or in his absence any other member authorised by him, to attend general meetings. It is not limited to extraordinary meetings and is not optional.

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